Build a Scorecard for Account Executives

Scorecard for Account Executives

Account Executives perform the important function of taking qualified leads and turning them into revenue for your company.  It’s really important to know which ones are performing at expectation levels, and which aren’t. Leaving a poor-performing AE in the role for a long time will have a massively negative impact on your revenue, profit margin and unit economics.

Here’s an example of a scorecard you can create for your AE’s that tracks how they’re performing in 4 key areas:  Efficiency, Velocity, Results and Pipeline. Using this scorecard, you can see if a rep is on track, and if not, where they need to improve.

Efficiency:  How well does this rep turn qualified leads into pipeline?

MQL conversion rate for account executive

Demo completion rate

  • Measures whether this AE is able to hold SQLs accountable for showing up to the demos that were booked.  It's important because you’re spending a lot of money to generate the leads that want to see a demo of your solution.

Demo or MQL to opp conversion

  • Measures how good of a job the AE is doing on demos, or how good they are at converting qualified leads.  If the Account Exec is doing a good job of describing your value prop, their conversion rate will be higher.  Keep in mind, you don’t want this conversion rate to be too high, because that might mean the AE is not qualifying out bad prospects.

Sales Velocity - how skilled is this rep at closing deals?

Sales velocity breakdown

Close Rate

  • Measures the number of opps each rep is winning, out of the total number they opened.  This tells you about both how good the rep is at qualifying their opps in advance of opening them, as well as how skilled they are at getting prospects across the finish line.

ASP

  • This is the average size of the deals the rep is closing.  Reps that really probe into use cases, mobilize a champion, and sell to the whole org will achieve higher ASPs than those that do just enough to get the deal over the goal-line.

Sales Cycle

  • Measures the average amount of time it takes a rep to close a deal.  This is frequently at odds with ASP, where bigger ASP deals tend to have longer sales cycles.  Reps that have quick sales cycles are efficient and are holding prospects accountable -- but it’s worth making sure they aren’t rushing things in a way that makes them close smaller deals

Sales Velocity

  • Sales Velocity is a great metric to use to assess the rep’s overall skill at closing deals, as it combines Close Rate, ASP and Sales Velocity.  It allows you to compare a rep with small ASP and quick Sales Cycle with one who has a large ASP and long Sales Cycle, to see who is more productive overall.

Results - is this rep meeting expectations?

Quota attainment by sales rep

Bookings

  • This one is pretty straightforward and tracks the total sales this rep has made.

Quota Attainment

  • Measures the percentage of their quota that the rep hit.  It’s useful to look at Quota Attainment over time to see if a rep is consistent in their performance, or if they are up and down.  If they are up and down, then it typically means the rep spends one quarter generating pipeline and the next quarter closing it. That means you want to think about the process to see if you can make it easier on your AE’s to consistently generate pipeline and move it along.

Logos landed

  • For companies with a land and expand model, this one is critical.  In a land and expand model, a new logo is extremely valuable, as it unlocks a lot of potential future value.

Pipeline - will this rep succeed next month / quarter?

Pipeline coverage ratio

Opportunities created

  • Today’s opportunities are tomorrow’s customers, so make sure your reps are producing these consistently.

Pipeline created

  • Just like opportunity generation, pipeline has to be created consistently in order to stay in position to hit bookings targets.

Average value of pipeline created

  • Measures the size of the opps that a rep is creating.  Ideally, this average should match the rep’s ASP. If the average size of opps at creation matches the ASP, then that means the rep is doing a good job of closing opps consistently.  If they don’t match, then it means that either the rep’s opps are shrinking in size over time (they aren’t doing a good job of communicating your product’s value), or it means that the rep is only winning the big ones or the small ones.  Either way, it’s not efficient to open a lot of opps but only win some. The other opps could potentially be routed to somebody else.

Pipeline created by product

  • Measures whether this rep is just good at selling one of your offerings, or if they have command of your whole suite of products.  Only relevant for multi-product businesses.

Pipeline Coverage

  • This is the key metric in the set.  Pipeline coverage is a ratio of a rep’s pipeline against their quota.  If you measure this for forward-looking quarters, you can see whether a rep is set up to hit their goals next quarter, or if you need them to hunker down and find more pipeline.

Learn more

Rekener's Sales Rep Scorecards app connects in minutes to Salesforce or HubSpot CRM, and allows you to create custom scorecards to measure the performance of your Account Executives, BDRs, and other sales reps.

 

 

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Gregory Keshian

Greg is COO and Co-Founder at Rekener. Greg’s entire career has been focused on using BizOps to grow recurring revenue businesses. Before joining Rekener, he served as VP of Operations at ZeroTurnaround, where he built its BizOps practice and team. He did the same for the AVOKE call center analytics business, a SaaS company within BBN Technologies. He got his start in BizOps for recurring revenue businesses while at AppNeta.

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